Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-07-30

man Act in these bonds. paying an average
! premium therefor of 81 per cent There has
been paid in by the company to the sinking
fund So ,l6SG00 50-l00, the loss on which in in
terest and premium mp ID the present time is
Sl.6l2,s60 Y. In fact there is less money in the
sinking fund to-day than the amount paid in by
the company by over half n ilion-
| 1t was supposed when the company accepted
| the terms OF the Acts and entered into the con
tracts with the Government. tina. the Emitted
/ States would take into consideration the circum
| stances under which the road was constructed,
the difficulties encountered in its construction.
and the great benefits accruing to the Govern
ment by its increased facilities in mail service
and transportation, and allow it a like compen-
sation TO that formerly paid for the service
when performed by teams and pack animals
| This company, instead of receiving a 900. OOe
per annum, which would have been its reason
able proportion according TO the former rates of
compensation, has, in fact, received not more
than one eighth of that amount.
| also desire to call your attention to the fact
that a. the time of construction of the Pacific
Railway. no competing roads were anticipated.
II was expected that the Pacific road, for which
the Government issued its bonds, would be the
only transcontinental road until its debt to the
Government was fully liquidated. But soon
| after the company entered into a contract with
the United states for the construction of the
road, other parallel and competing roads were
aided by extensive land grants made 10 them by
the United States The land grant to the North
ern Pacific was many times in extent and value
more than the land grant to the Union and Gen.
trail companies. The Atlantic and Pacific, and
Texas and Pacific, and Atchison and Topeka are
| all competing roads to the Union and Central
and have all been aided by extensive land grants
| made by the Government since the commence
ment of the construction of the Genital Pacific
| NO COMPETITION AVAILABLE
| There was certainly no competition available
| to the Government with the Pacific Railroad from
| the time of its completion until 1881, when the
! Atchison, Topeka and Santa Fee united with the
Southern Pacific at Deming, New Mexico. Dur
ing all that period the Government was saved
| the full amount of the difference between what
was paid BY the former mode of transportation
and the actual amount paid after the completion
of the Pacific Railroad. The total of this amount
would be over 100000, nearly half of
which ought to be credited 10 the Central Pacific
| Railroad. The local business for Utah and Ne
| yada is exceedingly small, as will appear from
| answers 10 your questions, which shall here
after make The Central Pncific, outside of its
| local business in California mainly relies upon
| through business. This has been diminished by
the competing lines aided by the Government,
by at least sS7 000, coo, will be shown by the
facts and figures hereafter presented in answer
to the proper interrogatories.
EQUITIES OF THE COMPANY RECOGNIZED.
Tho Apt nj hn1ravar ,,Ddar xvb;ol
your Commission was organized recognizes the
equities of the company and provides for an ex-
animation of all the circumstances attending
the construction of the road, such as what was
the cost of Government transportation and mail
service on the line of the road prior to its COM
pletion how much more expensive was it to
construct the road at the time than it would
| have been five years earlier or five years later;
what discount was the company forced to make
in disposing of its bonds what loss has the
company sustained by competing lines sub
sidized BY the Government. This is the first
opportunity the company has had to present in
official forms these equitable considerations.
feel confident that when your Commission
shall have concluded its labors it will appear
that an equitable adjustment between the
| United States and the Central Pacific Company,
| the company will owe nothing to the Govern
| ment but, on the contrary, the Government
will be largely in debt to the company.
| CLAIMS AGAINST THE GOVERNMENT.
| will reeapituate the principal claims of the
company against the Government, which are:
First-The loss and interest thereon
which the company sustained by
being forced to sell the bonds re-
| ceived by it from the Government
| at discount;
lSJSs
Interest TO maturity 70 Sl6 1872 80